Business Express liable for Rs80 million

Railways department considering cancellation of operator’s contract.

KARACHI:

Within a few months of its inauguration, the privately run Business Express has become a defaulter of Rs80 million. The railways department is considering the cancellation of its agreement with the operator altogether, while response from passengers has remained cold due to hefty tariffs.

Sources told PPI that terms and conditions of the agreement were being violated by the private investor, while consistent non-payment
of dues has forced the department to reconsider the deal. They said that the operator owes more than Rs80 million to Pakistan Railways (PR).

On the other hand, response from passengers remains cold, despite the inclusion of an economy class. 30 to 40% seats of the high-profiled Business Express continue to be vacant, mainly due to exorbitant tariffs. A Business Class seat costs Rs5,000, while an economy class seat costs Rs3,500.

“The provided services were simply not worth Rs5,000,” said Sohail Iqbal, a passenger at Karachi Cantonment Station.

The Business Express was launched in February 2012, amid criticism from various sectors.

The company was bound to pay a hefty Rs3.04 million to the railway department on every trip. As per terms and conditions of the agreement, PR holds the right to terminate the contract if the investors fail to make payment for a period of five days. 

Published in The Express Tribune, April 17^th, 2012.